1. The company had an ending inventory of $4 million, net purchases of $7 million, net sales of $10 million, and a gross profit percent of 20%. Using the periodic inventory system, what was their beginning inventory?

2. The company had beginning total assets of $30,000 and ending total assets of $70,000. During the year, total liabilities increased $15,000. In addition, common stock of $20,000 was issued at par and dividends of $6,000 were declared and paid. How much was their net income for the year?

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